By Ogden S.B. No. 1769
77R2982 SMJ-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain contributions by members of the Teacher
1-3 Retirement System of Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 825.402, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 825.402. RATE OF MEMBER CONTRIBUTIONS. The rate of
1-8 contributions for each member of the retirement system is:
1-9 (1) five percent of the member's annual compensation
1-10 or $180, whichever is less, for service rendered after August 31,
1-11 1937, and before September 1, 1957;
1-12 (2) six percent of the first $8,400 of the member's
1-13 annual compensation for service rendered after August 31, 1957, and
1-14 before September 1, 1969;
1-15 (3) six percent of the member's annual compensation
1-16 for service rendered after August 31, 1969, and before the first
1-17 day of the 1977-78 school year;
1-18 (4) 6.65 percent of the member's annual compensation
1-19 for service rendered after the last day of the period described by
1-20 Subdivision (3) and before September 1, 1985; [and]
1-21 (5) 6.4 percent of the member's annual compensation
1-22 for service rendered after August 31, 1985 and before September 1,
1-23 2001; and
1-24 (6) six percent of the member's annual compensation
2-1 for service rendered after August 31, 2001.
2-2 SECTION 2. Section 825.403(a), Government Code, is amended to
2-3 read as follows:
2-4 (a) Each payroll period, each employer shall deduct from the
2-5 compensation of each member employed by the employer an amount
2-6 equal to 6.0 [6.4] percent of the member's compensation for that
2-7 period.
2-8 SECTION 3. Section 16(a), Article 3.50-4, Insurance Code, is
2-9 amended to read as follows:
2-10 (a) For the state fiscal year beginning September 1, 1985,
2-11 and for each subsequent state fiscal year, each active employee, as
2-12 a condition of employment, shall contribute to the fund an amount
2-13 equal to .65 [.25] percent of the employee's salary. Each month
2-14 the employer of an active employee shall deduct the contributions
2-15 from the employee's salary and shall remit the contributions to the
2-16 trustee as provided by any procedures that the trustee may require.
2-17 In lieu of deducting the contributions from salaries, an employer
2-18 may assume and pay the total contributions due from its active
2-19 employees for any month.
2-20 SECTION 4. This Act takes effect September 1, 2001, and
2-21 applies to the first full pay period for a member of the Teacher
2-22 Retirement System of Texas that begins on or after that date.